L & C too good to be true?

riyaz_7

Hi

Sorry for the long post.

Me and my wife are looking for a mortgage of approximately £130k. We have a deposit of £30k

We have a combined salary of £37k. She is a first time buyer. I own a property outright which is rented out. I have a clean credit file. My wife has a satisfied default (£2k) on her credit file which was satisfied in July 2015 and falls off next year. Other than that is perfect.

I spoke to L&C and they have sent what looks like an AIP which is good. I asked a further question in relation to the interest rate and the advisor has responded in the region of 2.3-2.7%. Is this really possible with a default? They have not asked for copies of credit files. Are they simply trying to get business by enticing with a low interest rate which we won't get?

Any personal experiences with L&C with a default?

Regards,
Riyaz

YHM

Have they told you the lender is?

They are a call centre operation, hence the low / no cost.

riyaz_7

I have sent them an email. L&C have replied advising they cannot give the name of the lender but the lender ignores any entries over 3 years old. Any idea if this is credible?

Blueoctopus

That's a bit odd they won't tell you, we used them and they were totally open about which lenders they could try. We were buying froma family member at a significantly discounted price and using the discount as our entire deposit so while not an adverse credit situation certainly not the usual one.

kingstreet

L&C normally only checks affordability and doesn't undertake any credit checks, so those with adverse may feel a little "exposed" when it comes to their "agreement in principle."

I would suggest working with a smaller independent broker recommended to you and start with all three versions of your statutory credit file so the full picture is there from day one.

YHM

Its a credible outcome, as there are lenders out there that do ignore defaults after 3 years, but I would personally expect there to actually be cheaper alternatives available to you.